Incomplete Records (Single Entry)

CA Intermediate : Accounting Page
ACHIEVER’S ACADEMY
(An exclusive place for CA coaching)
Chapter 3: Accounts from Incomplete Records 1
Chapter 3 : “ACCOUNTS FROM INCOMPLETE RECORDS”
CLASS ROOM DISCUSSION PROBLEMS

Question 1: Illustration 7 / Pg. 691 - Module
A. Adamjee keeps his books on single entry basis. The analysis of the cash book for the year
ended on 31st December, 2001 is given below:
Receipts Rs. Payments Rs.
Bank balance as on 1st January, 2001 2,800 Payments to Sundry Creditors 35,000
Received from Sundry Debtors 48,000 Salaries 6,500
Cash Sales 11,000 General expenses 2,500
Capital brought during the year 6,000 Rent and taxes 1,500
Interest on Investments 200 Drawings 3,600
Cash purchases 12,000
Balance at Bank on 31st Dec., 2001 6,400
Cash in hand on 31st Dec., 2001 500
68,000 68,000
Particulars of other assets and liabilities are as follows:
1st January, 2001 31st Dec., 2001
Sundry Debtors 14,500 17,600
Sundry Creditors 5,800 7,900
Machinery 7,500 7,500
Furniture 1,200 1,200
Stock 3,900 5,700
Investments 5,000 5,000
Prepare final accounts for the year ending 31st Dec., 2001 after providing depreciation at 10%
on machinery and furniture and Rs. 800 against doubtful debts.
Question 2: Illustration 9 / Pg. 697 - Module
From the following data, you are required to prepare a Trading and Profit and Loss Account for
the year ended 31st March, 2002 and a Balance Sheet as at that date:
Assets and Liabilities Rs.
As on 1st April’ 2001 As on 31st March’ 2002
Creditors 15,770 12,400
Sundry expenses outstanding 600 330
Sundry Assets 11,610 12,040
Stock in trade 8,040 11,120
Cash in hand and at bank 6,960 8,080
Trade debtors x 17,870
Details relating to transactions in the year: Rs.
Collection and discount credited to debtors 64,000
Sales return 1,450
Bad debts 420
Sales (cash and credit) 71,810
Discount allowed by trade creditors 700
Purchase returns 400
Additional capital-paid into bank 8,500
Realisations from debtors- paid into bank 62,500
Cash purchases 1,030
Cash expenses 9,570
Paid by cheque for machinery purchased 430
Household expenses drawn from bank 3,180
Cash paid into bank 5,000
Cash drawn from bank 9,240
Cash in hand on 31-3-2002 1,200
Cheques issued to trade creditors 60,270
(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

Question 3: Q.-1(b)/Pg.211– Counsellor – AFIR – Nov. 1997

The following is the Balance Sheet of the retail business of Sri Srinivas as at 31 st Dec., 1998:
Liabilities Rs. Assets Rs.
Sri Srinivas’s capital 1,00,000 Furniture 10,000
Liabilities for goods 20,500 Stock 70,000
Rent 1,000 Debtors 25,000
Cash at Bank 14,500
Cash in hand 2,000
1,21,500 1,21,500
You are furnished with the following information:
Sri Srinivas sells his goods at a profit of 20% on sales.
Goods are sold for cash and credit. Credit customers pay by cheques only.
Payments for purchases are always made by cheques.
It is the practice of Sri Srinivas to send to the bank every weekend the collections of the week
after paying every week, salary of Rs. 300 to the clerk, Sundry expenses of Rs. 50 and personal
expenses Rs. 100.
Analysis of the Bank Pass-Book for the 13 week period ending 31st March, 1999 disclosed the following:
Payments to creditors Rs. 75,000
Payments of rent upto 31-3-99 4,000
Amount deposited into the bank (include Rs. 30,000 received from debtors by cheques) 1,25,000
The following are balances on 31st March, 1999 : Rs.
Stock 40,000
Debtors 30,000
Creditors for goods 36,500
On the evening of 31st March, 1999, the cashier absconded with the available cash in the cash
box. There was no cash deposit in the week ended on that date.
You are required to prepare a statement showing the amount of cash defalcated by the cashier
& also a Profit & Loss Account for the period ended 31st March, 1999 and a Balance Sheet as
on that date.
Question 4: Q.-2/Pg.215– Counsellor – AFIR – May 1993
From the following information of M/s. Pradip & Co. prepare Trading and Profit and Loss Account
for the year ended 31st March, 1993 and the Balance Sheet as on that date :
Liabilities & Assets 31-3-1992 31-3-1993
Car 90,000 90,000
Furniture 10,000 10,000
Stock 70,000 90,000
Debtors 62,000 46,000
Bank 9,000 16,000
Creditors 60,000 ?
The following further information are also available :
a. M/s. Pradip & Co. purchases goods for resale from manufactures who allow discount of 3%
on goods purchased in excess of Rs. 5,00,000 in a year. The discount for the year ended
31st March, 1993 was Rs. 12,480.
b. All goods are sold at a gross profit margin of 30% on selling price.
c. Bank statements for the year reveal the following payments :
Creditors 9,03,520
Salaries 60,000
Car expenses 23,000
Rent 30,000
Printing and stationery 6,400
Rates and taxes 3,000
Carriage outward 18,600
Travelling expenses 14,900
Delivery van purchase 1,70,000
Miscellaneous expenses 9,580
Drawings 50,000
Depreciation on car and van @ 20% and Furniture @ 10% is to be provided on balances as on
31-3-1993.

Question 5: Q.-1 (Single Entry – J.K. Shah) (Pg.1)

The following is the Balance Sheet of Sri Ram as on 30th June 1985.
Capital Account 96,000 Building 65,000
Loan 30,000 Furniture 10,000
Creditors 62,000 Motor Car 18,000
Stock 40,000
Debtors 34,000
Cash in hand 4,000
Cash at Bank 17,000
1,88,000 1,88,000
A riot occurred on the night of 30 June, 1986 in which all books and records were lost. The
th
Cashier had absconded with the available cash. Sri Ram gives you following information:
His sales for the year ended 30th June 1986 were 20% higher than the previous year’s and 20%
of the total sales for the year ended 30-6-86 were for cash. There were no cash purchases. He
always sells his goods for cost plus 25%.
On 1st July 1985, the stock level was raised to Rs. 60,000 and stock was maintained at this
new level all throughout the year.
Collection from debtors amounted to Rs. 2,60,000 of which Rs. 70,000 was received in cash.
Business Expenses amounted to Rs. 40,000 of which Rs. 10,000 was outstanding on 30th June,
1986 and Rs. 12,000 was paid by cheque.
Analysis of the Pass Book revealed the following : Rs.
Payment to creditors 2,75,000
Personal Drawings 15,000
Cash deposited in Bank 1,43,000
Cash withdrawn from bank 24,000
Gross profit as per last year’s audited accounts was Rs. 60,000.
Provide depreciation on Building and Furniture at 5% and Motor Car at 20%.
The amount defalcated by the cashier may be treated as recoverable from him.
Prepare the Trading and Profit and Loss Account for the year ended 30th June, 1986 and Balance
Sheet as on that date.
Question 6: Q.-8/Pg.8– J.K. Shah – Single Entry
Suresh runs a Circulating Library and his accounts are in a Mess. One Bank Account has been
used for both the business as well as his personal transactions. After looking into his records
you gather the following information :
1. Payments for Magazines in the year ended 31st March, 1986 Rs. 9,700.
2. Payment of Delivery Peon’s Wages for the year ended 31 st March, 1986 Rs. 2,200.
3. Payment of other expenses for the year ended 31 st March, 1986 Rs. 3,080.
4. Subscriptions collected Rs. 21,695.
5. He has taken Rs. 500 per month in cash from the subscription to pay to his wife for their
household and personal expenses, depositing the balance of the collections into the bank.
6. During the year he bought second-hand car (not used for the business) from a friend
for Rs. 4,000. However, as the friend owed him Rs. 250 for subscriptions, the matter
was settled by a cheque for the difference.
7. An assurance policy on his life matured during the year and realized Rs. 7,000.
8. Suresh issued a cheque for Rs. 1,200 to a friend as loan. The friend is repaying by
instalments in cash owes Rs. 500 on 31-3-1896.
9. Magazine subscription for the year amounting to Rs. 400 had to be written off by
Suresh as irrecoverable.
10. Other personal payment by cheque total Rs. 2,350.
11. The cash collected includes Rs. 600 in respect of magazine subscription written off as
irrecoverable in a previous year.
12. Suresh runs the business from his flat for which a rent Rs. 90 per month is included in
the payment for other expenses Rs. 3,080. The living accommodation may be regarded
as two-third of the whole.
13. The following balances may be accepted as correct:

(Rs.)
31-3-1985 31-3-1986
Cash in hand 115 70
Bank Balance 4,720 5,880
Subscription (Debtors) considered good 1,830 2,105
Receivable: Creditors for purchase of Magazines 900 840
Stock of Magazines, at cost 2,450 830
You are required to prepare :
1. A cash and bank account for the year;
2. Suresh (Proprietor’s) Account for the year;
3. Profit and Loss Account for the Circulating Library for the year ended 31-3-1986; and
4. A Balance Sheet of the Business as at 31st March 1986.
Question 7: Q.-5/Pg.161– Scanner – AFIR – May 2001
A trader keeps his books of account under single entry system. On 31st March, 2000 his
statement of affairs stood as follows :
Trade Creditors 5,80,000 Furniture, Fixtures & Fittings 1,00,000
Bills payable 1,25,000 Stock 6,10,000
Outstanding Expenses 45,000 Trade Debtors 1,48,000
Capital Account 2,50,000 Bills receivable 60,000
Unexpired Insurance 2,000
Cash in Hand & at Bank 80,000
10,00,000 10,00,000
The following was the summary of Cash-book for the year ended 31st March, 2001 :
Receipts Rs. Payments Rs.
Cash in Hand & at Bank on 1-4-2000 80,000 Payments to Trade Creditors
75,07,000
Cash sales 73,80,000 Payments for Bills Payable
8,15,000
Receipts from Trade Debtors 15,10,000 Sundry Expenses paid
6,20,700
Receipts from Bills receivable 3,40,000 Drawings 2,40,000
Cash in Hand & at Bank on 31-3-2001
1,27,300
93,10,000 93,10,000
Discount allowed to trade debtors and received from trade creditors amounted to Rs. 36,000 and
Rs. 28,000 respectively. Bills endorsed amounted to Rs. 15,000. Annual Fire Insurance premium of
Rs. 6,000 was paid every year on 1st August for the renewal of the policy. Furniture, fixtures and
fittings were subject to depreciation @ 15% per annum on diminishing balance method. You are also
informed the following balances as on 31st March, 2001 :
Stock Rs. 6,50,000
Trade Debtors 1,52,000
Bills Receivable 75,000
Bills Payable 1,40,000
Outstanding Expenses 5,000
The trader maintains a steady gross profit ratio of 10% on sales. Prepare Trading and Profit
and Loss Account for the year ended 31st March, 2001 and Balance Sheet as at that date.
On April 1, 1983 Mr. Silgardo bought for Rs. 50,000 a business whose assets and liabilities are
shown below. The business carried on its operations in a rented shop from which it sold
cosmetics and confectionery. The business did not keep double-entry accounts, but you are
provided with following information:
(i) Balance Sheet of the Company as on 31st March, 1983 Rs.
Capital amount 50,000 Fixed Assets: Fixture & Fitting 30,000
Profit & Loss A/c. 10,500 Current Assets:
Creditors Stock at cost: Cosmetics 5,000
Cosmetics 2,500 Confectionery 3,000
Confectionery 2,000 Sundry Debtors: Confectionery 500
Outstanding Rent 500 Balance with Bank 23,500
Prepaid Rates & Insurance 2,500
Cash in Hand 1,000
65,500 65,500

(ii) Analysis of the Bank Statements for the year ended March 31, 1984.
Rs.
Paid in Cash 2,45,000
Payment for Cosmetics 1,00,000
Payment for 1,10,000
Withdrawn for:
Confectionery
Repairs 4,000
Rent 6,000
Rates & Insurance 10,000
Electricity 4,000
Mr. Silgardo 15,000
(iii) The following were paid in cash :
Salaries 15,000
Confectionery Purchases 1,500
Trade Expenses 1,250
Cosmetic Purchases 5,000
(iv) Mr. Silgardo had taken from the shop Cosmetics for his own consumption and paid
into the till the cost price of Rs. 4,550.
(v) The following are the gross profit percentages with reference to sales:
Cosmetics 9%, Confectionery 30%
(vi) On 31st March, 1984 there were :
(Rs.)
Stock at Cost Debtors/prepayment & Cash Liabilities
Cosmetics 4,850 Nil 2,000
Confectionery 3,500 1,000 3,000
Rent --- --- 500
Rates & Insurance --- 2,750 ---
Cash in Hand --- 250 ---
Accountancy/Audit Fees --- --- 3,500
(vii) Mr. Silgardo has instructed you to regard any shortage in cash as being due to amount
withdrawn by him.
You are required to prepare :
(a) The Trading and Profit and Loss Account for the year ended March 31, 1984 showing
separately the gross profit from (i) Cosmetics and (ii) Confectionery.
(b) Balance Sheet as at March 31, 1984.
From the following details and information pertaining to Agarwal Nursing Home, you are
required to prepare an Income and Expenditure Account and the Balance Sheet as at 31 st
March, 1986 :
a. The Nursing Home was started on 1st April 1983 with Rs. 1,50,000 as capital. For the
years ended 31st March, 1984 and 31st March 1985 a loss of Rs. 14,000 and a profit of
Rs. 32,000 were made.
b. The equipment and machinery installed in the Nursing Home were financed fully by the
State Bank of India to the extent of Rs. 3,50,000. The loan taken on 1 st April 1983
from the Bank, carries an interest of 16% per annum on diminishing balance and the
principal is to be repaid in ten equal half yearly instalments due on 30th September and
31st March along with interest. The commitments up to 1 st April 1985 have been
discharged by the business.
c. From the Nursing Home’s daily patient register, you notice the following :
1. Bills are raised on weekly basis for payment by patients.
2. Bills raised upto 24th March, 1986 are Rs. 11,45,500.
3. Bills yet to be raised for the last week are Rs. 23,500.
d. All receipts are banked with State Bank of India in a Current Account and all expenses,
except Rs. 500 drawn every week for petty cash expenses, are met by cheques. The
following is the summary of Bank transactions:

Rs.
Deposits: Received from Patients 11,30,000
Discount received from drug manufacturers and agents 12,000
Withdrawals: Salaries and wages 4,50,000
Payments to Creditors for drugs etc. 3,75,000
Purchase of detergents 20,000
Power and lighting bills 70,100
Machinery Maintenance and Repairs 30,000
Withdrawals by partners 48,000
Rent for premises 30,000
The bank has debited the current account with the loan instalments and interest due on the
specified dates. A sum of Rs. 2,700 has also been debited by the Bank towards insurance
premium on the fire risks against machinery cover on behalf of the insured.
e. Balances as on 1st April 1985. Rs.
Sundry Creditors for drugs and medicines 25,000
Salary due to Staff 30,000
Rent due March 1985 2,500
Accounts receivable 30,000
Furniture & Fixtures 1,80,000
Stock of medicines 23,000
Cash imprest 500
Interest free loan taken from the Disabled warriors Society, Delhi 1,38,000
f. Amounts due on 31st March, 1986;
Salary to Staff 15,000
Amounts due for purchases made 18,000
Rent due for March 1986 2,500
Stock of medicines 12,000
The Nursing Home is run by a partnership consisting of Mr. and Mrs. Agarwal (both being
doctors) who are entitled to a salary of Rs. 2,000 and Rs. 1,000 per month respectively.
Husband and wife share capital and profits & losses in the same ratio as their salary entitlements.
Drawings are to be transferred to capital accounts of partners in the same ratio as capitals.
Depreciation on equipment and machinery is to be charged at 10% on the straight line method
and on furniture & fixture at 15% of their book value.
Question 10: May 1998/Pg.212– Counsellor – AFIR
Shri Rashid furnishes you with the following information relating to his business:
(a) Assets and liabilities (in Rs.) as on
1.1.1997 31.12.1997
Furniture (w.d.v.) 6,000 6,350
Stock at cost 8,000 7,000
Sundry Debtors 16,000 ?
Prepaid expenses 600 700
Unpaid expenses 2,000 1,800
Cash in hand & at bank 1,200 625
(b) Receipts and payments during 1997:
Collections from debtors, after allowing discount of Rs.1,500 amounted to Rs.58,500.
Collections on discounting of bills of exchange, after deduction of discount of Rs.125 by
bank, totaled to Rs.6,125.
Creditors of Rs. 40,000 were paid Rs. 39,200 in full settlement of their dues.
Payment for freight inwards Rs. 3,000.
Amounts withdrawn for personal use Rs. 7,000.
Payment for office furniture Rs. 1,000.
Investment carrying annual interest of 4% were purchased at Rs. 96 on 1st July, 1997
and payments made therefor.
Expenses including salaries paid Rs. 14,500.
Miscellaneous receipts Rs. 500.

(c) Bills of exchange drawn on and accepted by customers during the year amounted to Rs.
10,000. Of these bills, bills of Rs. 2,000 were endorsed in favour of creditors. An endorsed
bill of exchange of Rs. 400 was dishonoured.
Goods costing Rs. 900 were used as advertising materials.
Goods are invariably sold to show a gross profit of 33⅓% on sales.
Difference in cash box, if any, is to be treated as further drawing or introduction by Shri. Rashid.
Provide at 2.5% for doubtful debts on closing debtors.
Rashid asks you to prepare trading and profit and loss a/c for the year ended 31 st
December, 1997 and the balance sheet as on that date.
K. Azad, who is in business as a wholesaler in sunflower oil, is a client of your accounting firm.
You are required to draw up his final accounts for the year ended 31-3-1996.
From the files, you pick up his Balance Sheet as at 31-3-1995 reading as below:
(amounts in Rs.)
Liabilities K. Azad’s Capital 1,50,000
Creditors for Oil Purchases 2,00,000
12% Security Deposit from Customers 50,000
Creditors for Rent 6,000
Expenses: Salaries 4,000
Commission 20,000
4,30,000
Assets Cash and Bank Balances 75,000
Debtors 1,60,000
Stock of Oil (125 tins) 1,25,000
Furniture 30,000
Less : Depreciation 3,000 27,000
Rental Deposit 12,000
Electricity Deposit 1,000
3-Wheeler Tempo Van 40,000
Less : Depreciation 10,000 30,000
4,30,000
A summary of the rough Cash Book of K. Azad for the year ended 31-3-1996 is as below:
Cash & Bank Summary (amounts in Rs.)
Receipts Cash Sales 5,26,500
Collections from Debtors 26,73,500
Payments To Landlord 79,000
Salaries 48,000
Miscellaneous Office Expenses 12,000
Commission 20,000
Personal Income-tax 50,000
Transfer on 1-10-95 to 12% Fixed Deposit 6,00,000
To Creditors for Oil Supplies 24,00,000
A scrutiny of the other records gives you the following information :
(i) During the year oil was purchased at 250 tins per month basis at a unit cost of Rs. 1,000.
5 tins were damaged in transit in respect of which insurance claim has been preferred.
The surveyors have since approved the claim at 80%. The damaged ones were sold for
Rs. 1,500 which is included in the cash sales. One tin has been used up for personal
consumption. Total number of tins sold during the year was 3,000 at a unit price of Rs.
1,750.
(ii) Rent until 30-9-95 was Rs. 6,000 per month and was increased thereafter by Rs. 1,000
per month. Additional deposit of Rs. 2,000 was paid and this is included in the figure of
payments to landlord.
(iii) Provide depreciation at 10% and 25% of WDV on furniture and tempo van respectively.
(iv) It is further noticed that a customer has paid Rs. 10,000 on 31-3-1996 as security deposit
by cash. One staff has defalcated this amount. The claim against the Insurance Company
is pending.
You are requested to prepare final accounts for the year ended 31-3-1996.

Question 12: Illustration 11 / Pg. 702 – Module

Mr. Anup runs a wholesale business where-in all purchases and sales are made on credit. He
furnishes the following closing balances:
31-12-2000 31-12-2001
Bills Receivable 15,000 6,000
Bills Payable 12,000 14,000
Stock 1,10,000 1,90,000
Bank 90,000 87,000
Cash 5,200 5,300
Summary of cash / bank transactions during 2000-2001:
(i) Deposited to bank after payment of shop expenses @ Rs. 600 p.m., salaries @ Rs.
9,200 p.m. and personal expenses @ Rs. 1,400 p.m. – Rs. 7,62,750
(ii) Withdrawals Rs. 1,21,000
(iii) Cash payment to suppliers Rs. 77,200 for supplies and Rs. 25,000 for furniture.
(iv) Bills accepted by customers Rs. 40,000.
(v) Bills endorsed Rs. 10,000.
(vi) Bills discounted Rs. 20,000, discount Rs. 750.
(vii) Bills matured and duly collected Rs. 16,000.
(viii) Bills accepted Rs. 24,000.
(ix) Paid suppliers by cheque Rs. 3,20,000.
(x) Received Rs. 20,000 on maturity of one LIC policy of the proprietor by cheque.
(xi) Rent received Rs. 14,000 by cheque.
(xii) A building was purchased on 30-11-2001 for opening a branch for Rs. 3,50,000 and
some expenses were incurred, details of which are not maintained.
(xiii) Electricity and telephone bills paid by cash Rs. 18,700, due Rs. 2,200.
Other transactions:
(i) Claim against the firm for damage Rs. 1,55,000 is under legal dispute. Legal expenses
Rs. 17,000. The firm anticipates defeat in the suit.
(ii) Goods returned to suppliers Rs. 4,200
(iii) Goods returned by customers Rs. 1,200
(iv) Discount offered by suppliers Rs. 2,700
(v) Discount offered to the customers Rs. 2,400
(vi) The business is carried on at the premises owned by the proprietor. 50% of the ground
floor space is used for business and remaining 50% is let out for an annual rent of Rs.
20,000.
Prepare Trading and Profit & Loss A/c of Mr. Anup for the year ended 31-12-2001 and Balance
Sheet as on that date.
Question 13: Q.1 Pg. 10.3 – IPCC Module
Assets and Liabilities of Mr. X as on 31-12-2007 and 31-12-2008 are as follows:
Amounts in Rs.
31.12.2007 31.12.2008
Assets Building 1,00,000
Furniture 50,000
Stock 1,20,000 2,70,000
Cash at Bank 70,000 85,000
Cash in Hand 1,200 3,200
Liabilities Loans 1,00,000 80,000
Decide to depreciate building by 2.5% and furniture by 10%. One Life Insurance Policy of the
Proprietor was matured during the period and the amount Rs.40,000 is retained in the business.
Proprietor took @ Rs.2,000 p.m. for meeting family expenses.
Prepare Statement of Affairs and ascertain profit for 2008.

Question 14: Q.4 Pg. 10.8 – IPCC Module

The Income Tax Officer, assuming the income of Shri Moti for the financial years 2006-07 and
2007-2008 feels that Shri Moti has not disclosed the full income. He gives you the following
particulars of assets and liabilities of Shri Moti on 1st April 2006 and 1st April, 2008.
Rs.
1.4.2006 Assets:
Cash in hand 25,500
Stock 56,000
Sundry Debtors 41,500
Land and Building 1,90,000
Wife’s Jewellery 75,000
Liabilities: Owing to Moti’s Brother 40,000
Sundry Creditors 35,000
1.4.2008 Assets: Cash in hand 16,000
Stock 91,500
Land and Building 1,90,000
Motor Car 1,25,000
Wife’s Jewellery 1,25,000
Loan to Moti’s Brother 20,000
Liabilities: Sundry Creditors 55,000
During the two years the domestic expenditure was Rs.4,000 p.m. The declared income of the
financial years were Rs. 1,05,000 for 2006-07 and Rs.1,23,000 for 2007-08 respectively. State
whether the Income-tax Officer’s contention is correct. Explain by giving your workings.
Fair Travel Agency, owned by Green, effects sales of tickets for Tour Operations Ltd., airlines
and shipping companies and earns commission thereon at the rate of 10%, 7½% and 7%
respectively. The accounts are made up to 31st October, each year. The balances as on 31st
October, 2002 were as follows: Rs.
Particulars Dr. Cr.
Fixtures and Fittings 10,000 Capital 51,000
Motor Car 9,000 Deposits from customers (re: Tour) 20,000
Debtors for shipping tickets 5,000 Tax deducted at source 2,500
Debtors for air tickets 1,000 Office Expenses 1,500
Rent in advance 1,250 Advertising 1,000
Bank Balance 50,750 Rates 1,000
77,000 77,000
The following additional information is available :
1. Transactions with and through bank : Rs.
Banking 8,20,000
Payments for tickets: Tour operator Ltd 6,20,000
Airlines 65,000
Shipping Companies 70,000
Rent (four quarters) 5,000
Electricity 900
Rates 3,000
Office Expenses 1,500
Tax deducted at source 9,100
Advertising 6,250
Bank Balance (31st Oct. 2003) 90,000
There is no Cash Balance
2. Weekly expenditure (52 weeks) defrayed from cash taking before banking :
Staff Wages Rs. 400 (net)
Petty Expenses Rs. 10
Drawings Rs. 200 (There were other adhoc drawings also).
3. The liabilities on 31st October, 2003 were as follows :

Rates 1,100
Advertising 500
Shipping companies 13,700
Tour Operators Ltd. 5,500
Airlines 1,600
Office Expenses 1,500
4. Customers deposit on 31st October, 2003 (all re: Tour) were Rs. 10,000 and debtors for
shipping tickets were Rs. 1,000.
5. Depreciation on car and office furniture is respectively at 25% and 10% of the diminishing
value.
Prepare the final accounts relating to the year ending October 31, 2003.
Question 16: Q.2/Pg.4-Suggested PE-II Nov.2004/Single Entry – AFIR
Lucky does not maintain proper books of accounts. However, he maintains a record of his bank
transactions and also is able to give the following information from which you are requested to
prepare his final accounts for the year 2003:
Amounts in Rs.
1.1.2003 31.12.2003
Debtors 1,02,500 --
Creditors -- 46,000
Stock 50,000 62,500
Bank Balance -- 50,000
Fixed Assets 7,500 9,000
Details of his bank transactions were as follows:
Rs.
Received from debtors 3,40,000
Additional capital brought in 5,000
Sale of fixed assets (book value Rs. 2,500) 1,750
Paid to creditors 2,80,000
Expenses paid 49,250
Personal drawings 25,000
Purchase of fixed assets 5,000
No cash transactions took place during the year. Goods are sold at cost plus 25%. Cost of
goods sold was Rs. 2,60,000.
You are given :
(a). The Balance Sheet of A on 1st April, 1989:
Rs.
Bank overdraft 500 Cash in hand 70
Sundry Creditors 3,600 Bills receivable 2,500
Bills payable 1,600 Stocks of goods 7,530
Capital 20,000 Plant & Machinery 4,700
Land & Building 7,000
25,700 25,700
(b) The cash transactions for the year upto March 31, 1990:
To Balance b/d 70 By Balance (Bank overdraft) b/d 500
To Receipts from debtor 29,000 By Salaries 4,900
To Bills receivable 10,000 By Wages 1,580
To Cash sales 3,700 By Bills payable 14,300
By Payment to creditors 14,700
By Office expenses 800
By Drawings 4,500
By Investment at par (9% G.P. Notes on 1-10-1989) 1,000
By Balance on 31-3-1990 (Cash 40 + Bank 450) 490
42,770 42,770

(c) A summary of the remaining transactions for the year upto March 31, 1990:
Sales credit Rs. 40,700
Discount to customer 200
Purchases 30,000
Discount received 100
Bills payable issued 15,000
Bills receivables received 10,900
Stock of goods on 31st March, 1990 5,300
Provide for doubtful debts at 5% on debtors outstanding. Provide for depreciation on Plant &
Machinery at 5% and on Land & Buildings at 2.5%. Prepare the Trading and Profit and Loss
Account for the year ended 31st March, 1990 and Balance Sheet as on that date.
A is importer of fancy goods, operating from rented premises which is on lease of Rs. 1,000
per month. He prepares his accounts as on 31st December each year. On the right of December
31st, 1987 all his books and records were destroyed in a fire. The following was his summarised
financial position as on 31st December, 1986 : (Figures in Rs.)
Fixed Assets Motor Car 20,000
Furniture 10,000 30,000
Current Assets Stock in trade (at cost) 2,00,500
Debtors 24,000
Balance at Bank 27,060
Cash in hand 590
Prepaid rates 500 2,52,650
Current Liabilities Creditors for purchases 1,10,200
Accrued rent 2,000
Due for Hire Purchase Instalments 2,790 1,14,990
The following further information is also available :
a. A buys goods for resale only from one manufacturer in Japan, who allows a rebate of 3%
of the goods purchased by him in excess of Rs. 5,00,000 in a calendar year. The rebate
due for the year ended 31st December, 1987 was Rs. 12,480.
b. All goods are sold at a standard gross profit margin of 40% on selling price. Any rebate due
is to be ignored for the purpose.
c. Stock at cost on 31st December, 1987 amounted to Rs. 90,200.
d. Weekly cash expenses out of cash collection (before depositing the same into the bank)
have been :
Drawings 300
Carriage outward 500
Petrol 100
General expenses 50
Cash in hand on 31st December, 1987 amounted to Rs. 1,670.
e. His bank statements for the year reveal the following information :
Paid for purchases of goods 10,10,500
Car expenses 6,680
Rent 13,000
Rates for the year ended 31st December, 1988 3,200
Hire purchase instalments (final payments) 3,040
Salaries 1,12,460
Travelling expenses 36,800
Printing & stationery 6,400
Advertisement 12,280
Insurance (for business) 3,000
Lorry Hire charges 48,700
General expenses 36,230
Drawings 37,000
Balances as on 31st December, 1987 2,31,800
f. Depreciation on motor car and furniture is to be provided 30% and 15% respectively.
Prepare Trading and Profit and Loss Account for the year ended on 31 st December, 1987 and
the Balance Sheet as on that date.

Question 19: Q.-1/Pg.164– Scanner – AFIR – Nov. 2003

The following information relates to the business of Mr. Shiv Kumar, who requests you to
prepare a Trading and Profit and Loss Account for the year ended 31st March, 2003 and a
Balance Sheet as on that date:
Balance as on 31-3-2002 Balance as on 31-3-2003
Building Rs. 3,20,000 Rs. 3,60,000
Furniture 60,000 68,000
Motorcar 80,000 80,000
Stocks ? 40,000
Bills payable 28,000 16,000
Cash and Bank balances 1,80,000 1,04,000
Sundry Debtors 1,60,000 ?
Bills Receivable 32,000 28,000
Sundry Creditors 1,20,000 ?
Cash transactions during the year included the following besides certain other items :
Sale of old papers & miscellaneous income Rs. 20,000 Cash purchases Rs. 48,000
Miscellaneous Trade expenses 80,000 Payment to creditors 1,84,000
(including salaries etc)
Collection from debtors 2,00,000 Cash Sales 80,000
Other information :
i. Bills receivable drawn during the year amount to Rs. 20,000 and Bills payable accepted Rs.
16,000.
ii. Some items of old furniture, whose written down value on 31st March, 2002 was Rs. 20,000
was sold on 30th September, 2002 for Rs. 8,000. Depreciation is to be provided on Building
and Furniture @ 10% p.a. and on Motorcar @ 20% p.a. Depreciation on sale of furniture
provided for 6 months and for additions to building be charged for whole year.
iii. Of the Debtors, a sum of Rs. 8,000 should be written off as Bad Debt and a reserve for
doubtful is to be provided @ 2%.
iv. Mr. Shiv Kumar had been maintaining a steady gross profit rate of 30% on turnover.
v. Outstanding salary on 31st March, 2002 was Rs. 8,000 and on 31st March, 2003 was Rs.
10,000. On 31st March, 2002, Profit & Loss Account had a credit balance of Rs. 40,000.
vi. 20% of total Sales and total purchases are to be treated as for cash.
vii. Additions in Furniture Account took place in the beginning of the year and there was no
opening provision for doubtful debts.
The following is the balance sheet of Sanjay, a small trader as on 31-3-96 (Figures in Rs. ‘000):
Capital 200 Fixed Assets 145
Creditors 50 Stock 40
Debtors 50
Cash on hand 5
Cash at Bank 10
250 250
A fire destroyed the accounting records as well as the closing cash of the trader on 31-3-97.
However, the following information was available:
a. Debtors and creditors on 31-3-97 showed an increase of 20% as compared to 31-3-96.
b. Credit Period : Debtors – 1 month Creditors – 2months
c. Stock was maintained at the same level throughout the year.
d. Cash sales constituted 20% of total sales.
e. All purchases were for credit only.
f. Current ratio as on 31-3-97 was exactly 2.
g. Total cash and bank expenses paid excluding depreciation for the year amounted to Rs.
2,50,000.
h. Depreciation was provided at 10% on closing value of fixed assets.
i. Bank and cash transactions :
1. Payments to creditors included Rs. 50,000 by cash.
2. Receipts from debtors included Rs. 5,90,000 by way of cheques.
3. Cash deposited into the bank Rs. 1,20,000.

4. Personal drawings from bank Rs. 50,000.

5. Fixed assets purchased and paid by cheques Rs. 2,25,000.
For your exercise, assume cash destroyed by fire is written off in the P&L A/c.
You are required to prepare:
(a) The Trading and Profit and Loss Account of Sanjay for the year ended 31-3-97 and
(b) A Balance Sheet on that date.
Question 21: Nov 1997 - Pg.213– Counsellor – AFIR
Following is the abridged Balance sheet of the Everest Co. Ltd. as at 31st March, 1996:
Balance Sheet as at 31st March, 1996 (Amounts in Rs.)
Paid up share capital 5,00,000 Freehold Property 4,00,000
Profit and Loss Account 85,000 Plant and Machinery 2,50,000
Creditors 2,00,000 Depreciation 75,000 1,75,000
Stocks 1,05,000
Debtors 1,00,000
Bank 5,000
7,85,000 7,85,000
From the following information, you are required to prepare Profit and Loss Account and
Balance Sheet as at 31st March, 1997.
a. The composition of the total of the ‘Liabilities’ side of the company’s Balance Sheet as at
31st March, 1997 (the paid up share capital remaining the same as at 31st March, 1996) was:
Share Capital 50 percent
Profit and Loss Account 15 percent
7 percent Debentures 10 percent
Creditors 25 percent
The Debentures were issued on 1-4-1996, interest being paid on 30-9-1996 & 31-3-1997.
b. During the year ended on 31st March, 1997, Additional Plant and Machinery had been
bought and a further Rs. 25,000 depreciation written off. Freehold property remained
unchanged. The total fixed assets then constituted 60 percent of total fixed and current assets.
c. The current ratio was 1.6:1. The quick assets ratio was 1:1.
d. The debtors (four-fifths of the quick assets) to sales ratio revealed a credit period of two
months.
e. Gross profit was at the rate of 15 percent of selling price and Return on Net worth as at
31st March, 1997 was 10 percent. Ignore taxation.
Question 22: Q.-1/Pg.162– Scanner – AFIR – Nov. 2002
The following is the Balance Sheet of Sri Agni Dev as on 31st March, 2001 :
Capital Account 2,52,500 Machinery 1,20,000
Sundry Creditors for purchases 45,000 Furniture 20,000
Stock 33,000
Debtors 1,00,000
Cash in hand 8,000
Cash at Bank 16,500
2,97,500 2,97,500
Riots occurred and fire broke out on the evening of 31st March, 2002, destroying the books of
account and Furniture. The cashier was grievously hurt and the cash available in the cash box
was stolen.
The trader gives you the following information :
i. Sales are effected as 25% for cash and the balance on credit. His total sales for the year
ended 31st March, 2002 were 20% higher than the previous year. All the sales and
purchases of goods were evenly spread throughout the year (as also in the last year).
ii. Terms of credit : Debtors – 2 months; Creditors – 1 month
iii. Stock level was maintained at Rs. 33,000 all throughout the year.
iv. A steady Gross Profit rate of 25% on the turnover was maintained throughout. Creditors
are paid by cheque only, except for cash purchase of Rs. 50,000.
v. His private records and the Bank Pass-book disclosed the following transactions for the
year:

Miscellaneous Business expenses Rs. 1,57,500 (including Rs. 5,000 paid by cheque
and Rs. 7,500 was outstanding as on 31-3-2002)
Repairs Rs. 3,500 (paid by cash)
Addition to Machinery Rs. 60,000 (paid by cheque)
Private drawings Rs. 30,000 (paid by cash)
Travelling expenses Rs. 18,000 (paid by cash)
Introduction of Additional Capital Rs. 5,000
by depositing into the Bank.
vi. Collection from debtors were all through cheques.
vii. Depreciation on Machinery is to be provided @ 15% on the closing Book Value.
viii. The cash stolen is to be charged to the Profit and Loss Account.
ix. Loss of furniture is to be adjusted from the Capital Account.
Prepare Trading, Profit and Loss Account for the year ended 31st March, 2002 and a Balance
Sheet as on that date. Make appropriate assumptions wherever necessary.
From the information and ratio given below draw the Profit and Loss Account and Balance Sheet
of A.Sridhar as on 31-12-1989 :
Balance Sheet as on 1-1-1989
Capital 2,00,000 Machinery 70,000
Creditors : Furniture 15,000
Goods Supplied 35,000 Stock 35,000
Expenses 5,000 Debtors 1,00,000
Cash 5,000
Bank 15,000
2,40,000 2,40,000
Other Particulrs : Debtors Velocity – 2 Months; Creditors Velocity – 1 Month
Stock Level uniform. G.P. 33⅓%. Sales are 20% in cash and 80% on credit.
Sales for the current year is 20% more than the previous year. Receipts from Debtors in cash
is Rs. 50,000 and balance in cheques.
Payments by Cheques Rs. Payment by Cash Rs.
Creditors ? Business Expenditure 90,000
Machinery 40,000 Cash Deposited in Bank 1,00,000
Furniture 5,000
Investments 40,000
Drawings 20,000
Business Expenditure 60,000
Provide depreciation @ 10%.
Suresh does not maintain his books of accounts under the double entry system but keeps slips
of papers from which he makes up his annual accounts. He has borrowed moneys from a bank
to whom he has to render figures of profits every year. He has given the bank the following
profit figures :
Year ending 31st December Profits (Rs.)
1987 20,000
1988 32,000
1989 35,000
1990 48,000
1991 55,000
The bank appoints you to audit the statements and verify whether the figures of profits reported
are correct or not; for this purpose the following figures are made available to you :
a. Position as on 31st December, 1986 : Sundry debtors Rs. 20,000; Stock on trade (at 95%
of the cost) Rs. 47,500; Cash on hand and at Bank Rs. 12,600; Trade creditors Rs. 6,000;
Expenses due Rs. 1,600.
b. He had borrowed Rs. 5,000 from his wife on 30th September, 1986 on which he had agreed
to pay simple interest at 12% p.a. The loan was repaid along with interest on 31st
December, 1988.

c. In December, 1987, he had advanced Rs. 8,000 to A for purchase of a vacant land. The
property was registered in March, 1989 after payment of balance consideration of Rs.
32,000. Costs of registration incurred for this were Rs. 7,500.
d. Suresh purchased jewellery for Rs. 15,000 for his daughter in October, 1989 Marriage
expenses incurred in January, 1990 were Rs. 24,000.
e. A new VCR was purchased by him in March 1991 for Rs. 18,000 and presented by him to
his friend in November 1991.
f. His annual household expenses amounted to a minimum of Rs, 24,000.
g. The position of assets and liabilities as on 31st December 1991 was found to be Overdraft
with bank (secured against property Rs. 12,000; Trade creditors Rs. 10,000; Expenses
payable Rs. 600; Sundry debtors (including Rs. 600 due from a peon declared insolent by
court) Rs. 28,800, Stock in trade (at 125% of cost to reflect market value) Rs. 60,000 and
cash on hand Rs. 250.
It is found that the rate of profit has been uniform throughout the period and the proportion of
sales during the years to total sales for the period was in the ratio of 3:4:4:6:8.
Ascertain the annual profits and indicate differences, if any with those reported by Suresh to
the bank earlier.
Question 25: Q.3 Pg. 10.7 – IPCC SM
A and B are in Partnership having Profit sharing ratio 2:1. The following information is available
about their assets and liabilities :
(Amounts in Rs.)
31-3-2012 31-3-2013
Furniture 1,20,000 -
Advances 70,000 50,000
Creditors 32,000 30,000
Debtors 40,000 45,000
Stock 60,000 74,750
Loan 80,000 -
Cash at Bank 50,000 1,40,000
The partners are entitled to salary @ Rs. 2,000 p.m. They contributed proportionate capital.
Interest is paid @ 6% on capital and charged @ 10% on drawings.
Drawings of A and B
A B
Rs. Rs.
April 30 2,000 -
May 31 - 2000
June 30 4,000 -
Sept. 30 - 6,000
Dec. 31 2,000 -
Feb. 28 - 8,000
On 30th June, they took C as 1/3rd partner who contributed Rs. 75,000. C is entitled to share of
9 months’ profit. The new profit ratio becomes 1:1:1. A withdrew his proportionate share.
Depreciate furniture @ 10% p.a., new purchases Rs. 10,000 may be depreciated for 1/4th of a
year.
Current account as on 31-3-2012: A Rs. 5,000 (Cr.), B Rs. 2,000 (Dr.)
Prepare Statement of Profit, Current Accounts of partners and Statement of Affairs as on 31-
3-2013.

Incomplete Records (Single Entry)

Uploaded by

Copyright:

Available Formats

Incomplete Records (Single Entry)

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Incomplete Records (Single Entry)

Uploaded by

Copyright:

Available Formats

CA Intermediate : Accounting Page

Chapter 3 : “ACCOUNTS FROM INCOMPLETE RECORDS”

CLASS ROOM DISCUSSION PROBLEMS

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

Question 3: Q.-1(b)/Pg.211– Counsellor – AFIR – Nov. 1997

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

Question 5: Q.-1 (Single Entry – J.K. Shah) (Pg.1)

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

Question 12: Illustration 11 / Pg. 702 – Module

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

Question 14: Q.4 Pg. 10.8 – IPCC Module

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

Question 19: Q.-1/Pg.164– Scanner – AFIR – Nov. 2003

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

4. Personal drawings from bank Rs. 50,000.

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

(01/22) Faculty: CA Shveta Bhatia (98700-20045) (98673-10618) (90290-10045)

You might also like